Times are tight and with that said businesses are on the hunt for ways to cut costs and expenses without jeopardizing the business and its clients/customers. While there are plenty of typical and traditional routes a business can save money, one area of savings that often goes untapped can be found in the HR department.
Pretty much all medium and large-sized companies have an HR department, which means they can all be taking advantage of ways to cut costs without making too many sacrifices. Here’s a look at three effective ways a company can slash expenses in the HR department and help the bottom line.
Employ the Best Staff
Did you know that by hiring the right and best staff you can, in fact, cut costs right there? This means hiring qualified individuals with the educational background as well experience needed to excel in the position. Look at the HR department itself. Hiring individuals with an online MBA degree means you’re going to get people who know what they are doing and have a deep understanding of the inner-workings of the HR department.
These online MBA programs prepare students in all kinds of ways, which obviously benefits their employers.
Shop Around for Health Care Providers
Part of the HR department’s role is to find the best possible health care provider. This could also offer a way to collect on savings. HR staff can spend time shopping around and check to see if there are cheaper options available. Typical savings by switching providers can be as high as 15%. What’s great about this option is that you’ll still be providing staff with what they have become accustomed to, well-rounded healthcare, but the company will be saving money. It’s a win-win.
Outsourcing Could Provide Savings
Often, one of the best solutions is outsourcing various services within the company. The HR department itself can be outsourced, which can result in savings of up to 31%. These outsourcing services offer a wide variety of options and various price points, allowing businesses to really pick and choose what it is they want.
It’s Time to Upgrade the Company’s Technology
This is an example of how the famous saying “you have to spend more to make more” applies. Companies who upgrade their current HR technology to more cutting-edge and implement modern options will be able to realize large savings. Yes, it will be an investment and it can be pricey at first, but this investment will pay for itself thanks to the savings. These high-tech solutions can also make the HR department more productive and effective, which will help the bottom line.
Plenty of Savings to Be Realized
The HR department is, in fact, a hidden treasure trove of savings once you start to take a closer look. Of course, savings can be realized by cutting the number of staff, which is a common route for businesses, but, in reality, it may make more sense to use tips such as these to realize those savings.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.